Pubs, bars, restaurants and cafes across Wales will not be able to serve alcohol and must close at 6pm in new restrictions which come into force on Friday.
First Minister Mark Drakeford told a Welsh Government press conference that coronavirus was "accelerating across Wales" and the gains achieved during the country's 17-day firebreak lockdown were being eroded.
He said that unless action was taken now, the number of people with coronavirus in Welsh hospitals could reach 2,200 by January 12.
"From 6pm on Friday, our national measures will be amended to introduce new restrictions for hospitality and indoor entertainment attractions," Mr Drakeford said.
"Pubs, bars, restaurants and cafes will have to close by 6pm and will not be allowed to serve alcohol. After 6pm they will only be able to provide takeaway services.
"From the same date, indoor entertainment venues, including cinemas, bingo halls, bowling alleys, soft play centres, casinos, skating rinks and amusement arcades, must close."
The First Minster said that imposing new restrictions on the hospitality industry in Wales is a "matter of deep regret".
He said people meeting in hospitality settings were not having 'glancing contact' with others, such as in a supermarket, but sitting together for a period of time.
"When we get together in that way, whether its in our own home or in a hospitality setting, the virus thrives and the cases rise and we end up with the position that we see in Wales today," he said.
Mr Drakeford also promised to "provide the most generous package of financial assistance anywhere in the UK" to those affected by new restrictions in Wales.
Mr Drakeford said indoor visitor attractions would also have to close from Friday, while outdoor attractions could remain open.
Other national measures, such as household bubbles, will remain the same, as well as how many people can meet in public indoor or outdoors.
The restrictions will be formally reviewed by December 17 and then every three weeks.
Mr Drakeford said he was "grateful" for what the hospitality industry had done and acknowledged that the new restrictions would be "difficult" as they come at one of the busiest times of the year.
"To support businesses affected by these new restrictions into the New Year, we will provide the most generous package of financial assistance anywhere in the UK," he said.
This will include £180m specifically for tourism, leisure and hospitality business which is in addition to various support schemes available from the UK Government.
Westminster and the devolved governments across the UK have agreed to allow a temporary easing of restrictions between December 23 and 27 to allow up to three households to mix.
From Wednesday, all but a few hundred thousand people in England will be in Tiers 2 or 3, banning mixing doors as Boris Johnson's national lockdown comes to an end.
And those measures - which also include a ban on going to the pub unless it serves substantial meals and only with people in your household - must be adhered to in the final days of December and into January 1.
